Internal or external data management: which one to choose?

Data management, internal or external, has both advantages and disadvantages. It is up to each organization to choose its way, taking into account its priorities, needs and budget.

The Data managementwhether internal or external is today a unavoidable for the proper functioning of any organization. The CRM is certainly an irreproachable tool, but it must be recognized that the data it contains are even more so. This implies the need, even the obligation, to know how to process this data in order to achieve the desired goal. With all this data, the department in charge of processing the data must be given great importance. But how? The question arises: Is it advantageous to dedicate such tasks to an internal team or should one outsource them? Focus!

Table of contents

Why do we need to find a good approach to handle data?

Behind the success of a business is a myriad of data. However, with so much data accumulating, managing it can be difficult.

Some companies, especially those specialized in a technical field, are forced to assign such a task to an internal team. Is it better for them to assemble in-house elites to keep certain confidential information for example. On the other hand, we see companies working in generalist sectors outsourcing data management. Their argument is essentially based on the fact that theoutsourcing allows the team to focus more on the production.

On the other hand, data management can be entrusted to an internal or external team. If this team is not specialized in Data Sciencethe enigma will not be solved. Hiring would be more than necessary but expensive. This leads to the conclusion that it is necessary to make the right choice in data management. There are several criteria to look at closely such as budget, and the desired scope of the data analysis.

Internal or external data management, what’s the difference?

Internal and external are two eternally contradictory notions. This study will not only state this, but will go beyond it. Indeed, computer science encompasses a whole multitude of tasks and problems to be solved.

It is the engineers computer scientists who are in charge of creating the company’s applications, as well as maintaining the hardware, but not only. In fact, it is the same IT department that is responsible for the data processing of the firm. Only, it is indeed a position requiring a proven competence in data science. The latter, not being endowed to all the staff of the IT department, may not face certain obstacles.

On the other hand, there are companies that specialize in data management, those companies that gather data scientists. By using them, companies no longer have to worry about everything to do with data. It is the external team that takes care of the related tasks such ascloud hosting or data storage.

Internal or external data management: comparative analysis

Both methods of data management presents as manyadvantages than ofdisadvantages. In this part, we will present both in their two facets. First, we will focus on the strengths and weaknesses of in-house data management. The second part of the analysis will be devoted to the presentation of the strengths and weaknesses of the outsourcing of this department.

Managing information in-house

As we have seen above, information management can be done internally. This option is more advantageous especially when it is a specialized company. Indeed, the IT department can be the starting point of a company. This translates into the training of a handful of employees at the very beginning of the activity.

The robustness of the numerical frameworkalthough used on a small scale, is to be guaranteed in order to carry out the management information. One or two people may be enough, in this case, to monitor the profitability of the IT structure.

For larger companies, the IT department is an independent branch with a larger number of staff. In addition to providing technical support, this department must be able to control the data infrastructure such as data centers.

In all cases, internal or external data management has advantages depending on the size of the company. The advantages and possible disadvantages of such a method will be discussed below.

The advantages of internal data management

Internal data management allows you to obtain real-time updates and create a climate of trust internally. With a dedicated data management team, the company can ensure that its data is cleaned, sorted and organized. This is not always possible with an external team.

The company cannot remedy the unexpected that the third-party team experiences. This can lead to delays. On the other hand, an internal team better understands the need for data within the company. This generates more confidence and motivation in the rest of the staff.

The disadvantages of internal data management

It is true that outsourcing data management to an in-house team increases staff dedication. However, it also creates additional expenses since hiring qualified people is a must. In the absence of qualified peopleInternal data management is not as advantageous as outsourcing or external management.

In addition, sometimes data management is a temporary affair. This means that hiring a full-time technical staff generates more costs.

Outsourcing data management

As we have seen, internal data management is both a lever and a drag for the enterprise. But the same is true for external management in the sense that the third-party team cannot always satisfy the company’s demands. In this section, we will outline the strengths and weaknesses of such a method.

Before doing so, it should be remembered that outsourcing, in general, allows the firm to focus on production. Today, outsourcing the IT department is tempting more and more firms, especially large ones. Processing large amounts of data within a given time frame seems to be more difficult due to the lack of qualified people.

Instead of hiring one or more people on a temporary basis, it is better to entrust all the tasks to a specialized team. The firm’s involvement can then be adjusted as needed.

The advantages of outsourcing data management

Know that a team dedicated to data management, whether internal or external, must be available at all hours. But the in-house team is not always available outside of business hours. This is not the case with a third party team that can be trusted 24 hours a day, 7/7j to ensure reliable technical support.

On the other hand, data management to a third party team is rather advantageous for international firms working in multiple time zones. A dedicated team can react to problems and reduce downtime in the data center at any time. This allows the entire staff to produce more.

Disadvantages of data management by an external team

Can a team completely external to the company be trusted? Is there a risk of data leakage? With what budget can we afford the services of such a team? These are questions that the company must ask itself before considering outsourcing data management.

The complexity of the data, and especially their privacyA project like this requires an experienced team, which is usually more expensive to pay for. Even more so if the company works in a rather specific field, it is obliged to choose carefully which team to entrust with such a task.

In addition, thedata obsolescence is to be feared. Some information needs to be updated by you within the company. This is especially true for your contact information, which the third party team is not supposed to know.

A check is also necessary to ensure the veracity of the information obtained. This is even more time consuming.

Internal or external data management, which to choose?

Data management, both internal and external, is very useful for the smooth running of any company. The data are, in a way, the engine of each productive activity. However, the choice of whether or not to outsource this service is entirely up to the managers, taking into account the following criteria:

  • The size of the company,
  • The budget allocated,
  • The company’s sector of activity,
  • The nature of the business.

A small business may be managed by one or two IT managers. These two people can handle data that is less voluminous. However, the budget allocated to the data management department, whether internal or external, should not be neglected. The budget can be colossal for a company gargantuanunlike that of a small company.

Second, if a business is in a specific sectorOutsourcing may not be the ideal solution as some information cannot be disclosed. On the other hand, if it is a standard company, outsourcing allows the team to devote all its time to production.

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